Bitcoin is on track for its best month in a year. $5 billion USDT growth fuels the rebound
Strong earnings season trumps geopolitical risks for now, one trader said, as equities and crypto markets “stopped caring” about Iran war headlines.
What to know:
- Bitcoin, holding above $77,000 and up over 13% in April, is on pace for its strongest monthly performance in a year after a prolonged losing streak.
- A sharp increase in the supply of Tether’s USDT stablecoin to nearly $150 billion is boosting liquidity in crypto markets.
- Traders are watching whether bitcoin can break through the $79,000 resistance level, with the upcoming Federal Reserve meeting likely to determine if the rally extends or stalls.
The turnaround comes as the broader macro backdrop has improved. U.S. equities have staged a strong recovery, with the S&P 500 and Nasdaq climbing back to record highs after briefly slipping into correction territory earlier this year.
But there’s a crypto-specific driver behind the move, too.
The supply of Tether’s USDT , the largest and most popular stablecoin, has surged to just under $150 billion, adding about $5 billion over the past two weeks after months of stagnation.
That matters because stablecoins — cryptocurrencies tied to fiat money like the U.S. dollar — act as liquidity in crypto markets, the capital traders use to buy digital assets in the blockchain economy. Analysts often interpret stablecoin growth as a cue for capital flowing to the crypto market, a healthy signal for asset prices.
Markets ‘stopped caring’ about Iran war
Still, the macro picture hasn’t cleared yet. Geopolitical tensions in the Middle East and uncertainty around the Iran war persist, keeping oil prices at elevated levels.
